Borrowing money and signing a note payable would:
A)increase total assets and increase liabilities.
B)decrease liabilities and increase total assets.
C)increase liabilities and increase owner's equity.
D)increase total assets and increase owner's equity.

Question

Quizplus · Accepted Answer

Borrowing money increases total assets (cash or whatever the borrowed funds are used for) and also increases liabilities (the note payable represents the obligation to repay the borrowed funds).

Borrowing Money and Signing a Note Payable Would